Oil prices retreat after Trump halts further military action against Iran, reversing last week’s surge past $100 per barrel.
Brent crude futures fell below $92 after President Trump paused additional strikes on Iran, easing fears of a broader Middle East conflict. The move reversed last week’s rally that pushed prices above $100 amid threats of a ‘massive attack’ and rising geopolitical tensions.
Prior to the pause, Brent had surged on concerns over Houthi attacks on Saudi Aramco infrastructure, including the critical Yanbu port, and uncertainty over the Strait of Hormuz. Markets had also reacted to reports of a potential Saudi-Houthi blockade threatening crude flows to Asia.
Equity futures rose and sovereign bond yields declined as risk sentiment improved, though lingering Middle East tensions continue to cap downside risks for oil prices.